Energy Conversion Devices posts 4Q loss

ROCHESTER HILLS, Mich. (AP) — Solar panel product maker Energy Conversion Devices Inc. on Thursday posted a fiscal fourth-quarter loss, driven by hefty one-time charges and a sharp decline in demand for solar products as commercial construction declined, building owners deferred reroofing projects and project financing constraints continued.

The company reported a loss of $15.8 million, or 37 cents per share, compared with earnings of $9.9 million or 24 cents, during the same period last year.

Results were hurt by $13.6 million of special items related to unabsorbed overhead costs, restructuring costs, increased reserves for bad debt and warranty and a write-off of certain inventory.

Analysts polled by Thomson Reuters estimated a loss of 6 cents per share, on average. Analysts typically exclude one-time items.

Revenue declined 38 percent to $51.4 million, down from $82.4 million in the year-ago period. Analysts forecast an average revenue of $56.84 million.

For the full year, the company reported a net income of $12.5 million, or 29 cents per share, compared with $3.9 million, or 9 cents per share in the prior year. Revenue rose $316.3 million from $255.9 million.

Looking ahead to 2010, the company expects revenue to grow about 10 percent to 15percent from 2009 levels. The company predicted production at about 150 megawatts for the year, with higher volumes in the second half.

Mark Morelli, Energy Conversion Devices' CEO, pointed to the company's "demand-creation strategy" and the integration of recently acquired Solar Integrated Technologies as "key ingredients of our plan to return to profitability."

In 2010, the company expects to recognize costs of about $10 million associated with the acquisition of SIT.

Shares of the company fell 5.3 percent to $11.84 in premarket trading.